Biden shrugs at the 'hostage' takers

From: POLITICO West Wing Playbook - Friday Jul 23,2021 09:42 pm
Jul 23, 2021 View in browser
 
West Wing Playbook

By Sam Stein, Theodoric Meyer, Alex Thompson and Tina Sfondeles

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Welcome to POLITICO’s West Wing Playbook, your guide to the people and power centers in the Biden administration. With help from Allie Bice.

Senate Minority Leader MITCH MCCONNELL (R-Ky.) announced on Wednesday that every single member of his caucus would vote against raising the debt ceiling when the government hits the cap sometime this fall.

Such a proclamation reeked of hypocrisy, since Senate Republicans were willing to support debt ceiling hikes during Donald Trump’s presidency and since the current ceiling needs to be raised, in part, because of spending accumulated by bills passed with Republican votes.

In the aftermath of McConnell’s threat, many Democrats in Congress have been apoplectic.

“There should be no negotiating with economic arsonists who are threatening to tank our economy,” Sen. CHRIS VAN HOLLEN (D-Md.), a veteran of the 2011 debt limit fight, said in a statement to West Wing Playbook.

But not the White House. They’ve basically played it cool.

Press secretary JEN PSAKI, in a gaggle with reporters , said the administration “expect[ed] Congress to act in a timely manner... as they did three times on a broad bipartisan basis during the last administration.” Asked again on Friday, she echoed those talking points once more.

West Wing Playbook reached out to the White House press shop on Wednesday to ask for a bit more detail about how administration officials are thinking about a debt ceiling standoff. For the next day and a half, we got crickets. This morning, a White House official contacted us, but only would talk off the record. And, frankly, there was nothing notable said.

For those Democrats who went through the Obama-era debt ceiling fights, the Biden team’s nonchalance may seem mystifying.

Back in 2011, then-President BARACK OBAMA was pushed into debt ceiling negotiations by congressional Republicans, who demanded spending cuts commensurate with the size of the debt ceiling hike the White House was proposing. It was a mess that resulted in spending cuts, budget sequestration and the infamous "super committee" that was tasked with recommending deficit reduction measures.

After that experience, Obama made it very clear. He would never negotiate around the debt ceiling again. Period. Full stop. Don’t even mention it.

"In case there’s any confusion, I will not negotiate over whether or not America keeps its word and meets its obligations,” Obama said in 2013. “I will not negotiate over the full faith and credit of the United States.”

As part of the Democratic Party’s insistence that they would not negotiate around the debt ceiling, Obama and then-Senate Majority Leader HARRY REID (D-Nev.) made one notable tactical shift: they kept Biden away from the negotiations, fearful that his love of the give-and-take would open the door for Republicans to take the hostage once again.

The situation, of course, is different now. Republicans don’t control the House or the Senate. Biden doesn’t have to even talk to McConnell about it. Democrats can push a debt ceiling hike through a reconciliation bill that can pass without GOP votes and then let House Speaker NANCY PELOSI do her work.

“Obama was faced with a Republican Congress so he was really held hostage,” said DAVID AXELROD, Obama’s longtime aide. “[Biden’s people] can say we are not going to be held hostage again, but the fact is they’re not hostage.”

Indeed, senior aides on the Hill said they believed McConnell made his remarks this week not as a warning to Biden but as a signal for him to tuck a debt ceiling hike into the reconciliation package that Democrats are set to push once bipartisan infrastructure talks conclude.

“Weird for a minority leader to telegraph this early he’s afraid of having a vote, eh?” said one aide.

But even the prospect that the debt limit might be subject to negotiations (and, therefore, that it might not be raised) could damage the economic recovery that Biden has built his agenda around. “Even the threat of failing to [raise the debt limit] has caused detrimental impacts in the past, including the sole credit rating downgrade in the history of the nation in 2011,” Treasury Secretary JANET YELLEN wrote in a letter to Pelosi today.

And considering these stakes — along with the distinct possibility that Biden won’t always have a Democratic-run Congress — it would make some sense for the White House to continue the Obama precedent that the debt ceiling is non-negotiable. And yet, in each instance that Biden’s team has been asked to address Republican threats, they have never once said that the mere idea that the country would default on its debt was so inherently absurd and self-sabotaging that it wasn’t worthy of discussion.

We offered the White House the chance to do just that again today. They declined to make such a proclamation.

Do you work in the Biden administration? Are you in touch with the White House? Are you KIMBERLEY KAPLAN?

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PRESIDENTIAL TRIVIA

With the Partnership for Public Service

Which president is credited with writing down the first ice cream recipe in American history?

(Answer at the bottom.)

Cartoon of the Week

Cartoon by Bill Bramhall for the New York Daily News’

Cartoon by Bill Bramhall | Courtesy of the New York Daily News’

Every Friday, we’ll feature a cartoon of the week — this one is courtesy of the New York Daily News’ BILL BRAMHALL. Our very own MATT WUERKER also publishes a selection of cartoons from all over the country. View the cartoon carousel here.

The Oval

WHAT THE WHITE HOUSE WANTS YOU TO READ: “Baptist News Global” got a rare share from the White House today, with rapid response director MIKE GWIN touting its interview with FRANCIS COLLINS , the head of the National Institute of Health, who is a practicing evangelical Christian (we enjoyed this lengthier interview with him in NYMag last year).

On the vaccine, Collins said, “a lot of science went into this, but a lot of prayer too. It does feel like those prayers were answered. This feels like a gift from God, but you do have to unwrap that gift.” Then he showed off his talents for giving reporters a good quote: “Give God the glory but roll up your sleeve.”

WHAT THE WHITE HOUSE DOESN’T WANT YOU TO READ: Gallup’s blunt headline today is “Biden Approval Drops to 50%, Lowest for Him to Date.” FiveThirtyEight’s analysis that we shared yesterday found Biden’s approval rating to be steady but Gallup has measured a significant decline in Biden’s approval rating from the 56% mark he had as recently as June.

Gallup notes that the odds are against Biden in the next few months as “presidential approval ratings have been more likely to decline rather than increase during presidents' third quarters in office. Obama had the largest drop, of nearly 10 points, as unemployment climbed and his push for healthcare reform proved controversial.”

NEW ON THE TWITTERS: CEDRIC RICHMOND’s special assistant NIA PAGE hopped on her new Biden administration Twitter today.

Tweet by Nia Page

Tweet by Nia Page | Twitter

THE BUREAUCRATS

BIDEN’S OLYMPIANS Some people in the Biden administration are more into the Olympics than others. BECCA WARD, a legislative advisor for Energy Secretary JENNIFER GRANHOLM , wasn’t just into the games, she was actually IN them — and has two bronze medals to show for it.

The obscure bureaucrat, who previously worked for Sen. JEFF MERKLEY (D-Ore.), won bronze in both individual and team fencing in the 2008 games in Beijing, when she was 18. She then went on to dominate at Duke University, becoming the first saber fencer to win three NCAA individual titles, according to her bio on USA Fencing.

Agenda Setting

A LITTLE HELP — The Biden administration unveiled new loan modification options today for homeowners with government-backed mortgages to try to stave off a surge in foreclosures as borrowers struggle to pay their bills.

The new White House programs would allow homeowners hurt by the pandemic-driven economic downturn to extend the life of their mortgages with lower monthly payments, KATY O’DONNELL writes.

What We're Reading

States cutting unemployment benefits didn’t get people back to work, study finds (CNBC’s Greg Iacurci)

Meet the group trying to sink David Chipman’s nomination (HuffPost’s Kevin Robillard)

U.S. deputy secretary of State to visit China after all (The Diplomat’s Shannon Tiezzi)

Biden poised to nominate Caroline Kennedy as U.S. ambassador to Australia (CNN’s Nicole Gaouette and Jeff Zeleny)

Where's Joe

He will participate in a campaign event for Virginia gubernatorial candidate TERRY McAULIFFE in Arlington, Va., this evening before heading to Delaware for the weekend.

Where's Kamala

No public events scheduled.

The Oppo Book

Deputy Secretary of State WENDY SHERMAN is used to being careful with information, especially considering her husband, BRUCE STOKES, worked for decades as a D.C. journalist.

For the 1988 Democractic presidential convention, Sherman negotiated a slot for presidential candidate and civil rights leader JESSE JACKSON to speak, according to a 2013 Foreign Policy profile on Sherman.

Stokes was covering the convention for National Journal, and of course, ran into his wife at a hotel bar. He ran his notes by her in hopes she would confirm them — but Sherman refused to leak anything.

"We’ll just have to see, won’t we?" she told her husband.

That must’ve made for some interesting pillow talk!

Trivia Answer

THOMAS JEFFERSON, according to the Monticello website.

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Edited by Emily Cadei

 

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